Trump, who has imposed 25% tariffs on almost all products imported from Canada, has repeatedly said this year that the US has a “$200 billion” trade deficit with Canada – sometimes making the claim explicitly and sometimes using vaguer language about a supposed $200 billion subsidy or loss to Canada.

Canadian Prime Minister Justin Trudeau said his country would retaliate against Trump’s tariff hike and “will not let this unjustified decision go unanswered.” He said Canada would impose 25% tariffs on $107 billion worth of American goods.